The World's Best Book Summaries
What is the Efficient Market Hypothesis? How did John Meriwether use this hypothesis to perfect computer trading? The Efficient Market Hypothesis is a financial theory that states stock prices reflect all existing information. In the early 1980s, Meriwether used this theory to introduce computer-based mathematical modeling into trading. Discover how the Efficient Market Hypothesis played into Meriwether’s strategy.
How would a global minimum tax on billionaires’ wealth work? What are the main arguments for and against the tax? Does the proposal have a shot at becoming a reality? A proposal for a 2% minimum tax on billionaires’ wealth aims to raise revenue and address inequality, but faces skepticism. Proponents say the billionaire tax could generate $250 billion annually while critics argue that implementing the tax will require global coordination that will be tough to achieve quickly. Continue reading to learn about the different opinions regarding a billionaire tax.
What are the key points in Irrational Exuberance, Robert J. Shiller’s book on speculative bubbles? What does Shiller teach about stock market behavior? In Irrational Exuberance, Robert J. Shiller explains that speculative bubbles arise out of feedback loops, often driven by media coverage. When you learn more about these bubbles, you can better understand how to avoid losing money in stocks. Continue reading for an overview of Irrational Exuberance.
What does a speculative bubble look like? What are some examples of speculative bubbles? Speculative bubble examples can be found in US stock, housing, and bond markets throughout history. If you know what a speculative bubble looks like, you can help prevent stock market crashes in the future. Learn what a speculative bubble is from these three examples.
Why are some people poor? Are they keeping themselves down, or are they victims of others who don’t want them to succeed? In Poverty, by America, social scientist Matthew Desmond explores how and why the commonly cited explanations for poverty fall flat. Then he turns his attention to what he believes does explain the persistence of poverty in America. Read on to learn why Desmond thinks the exploitation of the poor is a reality in the US.
How has real estate speculation influenced the US housing market? What does it mean to form a speculative bubble? Real estate speculation drove unparalleled growth in the US housing market from the late 1990s to the early 2000s, but since this growth was based on speculation, it was unsustainable. Learning how this happens can help you avoid getting investments caught in a speculative bubble. Keep reading to discover how speculative bubbles have formed in the US housing market in the past.
How is the efficient market hypothesis explained by experts? What does it mean, and what are some counterarguments? The efficient market hypothesis, explained by financial experts, concludes that securities are always priced accurately due to the nature of the market. By understanding this hypothesis and the counterarguments to it, you’ll have a better understanding of how markets work. Learn more about the efficient market hypothesis from all angles.
Do you own Bitcoin or other cryptocurrency? Is investing in Bitcoin a good idea? According to Robert Shiller, Bitcoin provides an excellent example of the power of an economic narrative. He explains the fascinating Bitcoin narrative within a larger discussion of how we understand and predict economic behaviors in a qualitative rather than quantitative way. Read more to learn about the Bitcoin narrative and why it’s compelling to so many.
Which is better—the gold standard or fiat currency? Could you make a sound economic argument for your position? In Narrative Economics, economist Robert J. Shiller argues that human beliefs and actions, rather than numbers and statistics, ultimately drive economics. Specifically, he writes that beliefs about the gold standard are part of a recurring American economic narrative. Read more to learn Shiller’s take on the gold standard vs. fiat currency debate.
What are some tips on investing in stocks? How can you avoid being caught in a speculative bubble? The best tips on investing in stocks include recognizing overpriced assets in the market and diversifying your portfolio. To avoid overpaying for stocks, you should consider these factors more in-depth. Learn why stocks become overpriced and how to avoid losing money in investments.